Children’s toys are always on sale in November and December. Not very coincidental of course. But most of the time it’s not really an offer either. A few weeks earlier, the regular price of the product was often lower than the offer price in November. Prices and discounts should never be misleading, but until now it was the ACM that determined what was misleading. That will soon be a thing of the past, if there is a legal regulation.
New rules about discount
Since 28 May 2022, the Prices Act has been amended in response to European regulations. It now contains the following:
Theremay be rules regarding the disclosure of price reductions.
This was stated in the new version of the prices law that came into effect on May 28, 2022. This regulation (an Order in Council) will be issued, but has not yet been implemented.
The new arrangement has already been announced . It states Investors Email Lists that the ‘from price’ must be the lowest price of the past 30 days. That may sound simpler than it actually is. There are quite a few exceptions.
Don’t raise the price first and then lower it again
You can always ask the prices you want. The only thing that is not allowed is to refer to the highest price you have ever asked.
Do you want to mention a starting price or a discount percentage? Then you have to calculate that from the lowest price you have asked in all 30 days before.
Suppose on October 1 the price was $100, on October 5 you lowered it to $90 and on October 31 you lower the price to $89. Then you cannot say that you are giving a €11 discount. After all, the lowest price within 30 days was €90. The discount is therefore only €1.
If the product was €90 for a long time, it may therefore not be increased to €100 for a short time and then lower it again to €90 and thus be able to say that there is 10% discount. After all, the lowest price in those 30 days was already €90, so there is no question of a discount.